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Motives Matter: Examining Potential Tension in Central Bank Digital Currency Designs

Author

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  • Jesse Leigh Maniff

Abstract

As a new central bank liability, central bank digital currency (CBDC) has the potential to address various issues within current payments and financial systems. The motivation behind a CBDC will determine how it is designed; a CBDC designed to achieve one goal, such as broader financial inclusion, may have difficulty achieving other objectives.

Suggested Citation

  • Jesse Leigh Maniff, 2020. "Motives Matter: Examining Potential Tension in Central Bank Digital Currency Designs," Payments System Research Briefing, Federal Reserve Bank of Kansas City, pages 1-4, July.
    • Handle: RePEc:fip:fedkpb:88280
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    References listed on IDEAS

    as
    1. Lael Brainard, 2019. "Digital Currencies, Stablecoins, and the Evolving Payments Landscape : a speech at The Future of Money in the Digital Age, Sponsored by the Peterson Institute for International Economics and Princeton University’s Bendheim Center for Finance, Washing," Speech 1095, Board of Governors of the Federal Reserve System (U.S.).
    2. Michael D. Bordo & Andrew T. Levin, 2017. "Central Bank Digital Currency And The Future Of Monetary Policy," Economics Working Papers 17104, Hoover Institution, Stanford University.
    3. Jesse Leigh Maniff, 2020. "How Did We Get Here? From Observing Private Currencies to Exploring Central Bank Digital Currency," Payments System Research Briefing, Federal Reserve Bank of Kansas City, pages 1-7, February.
    4. Raphael Auer & Rainer Boehme, 2020. "The technology of retail central bank digital currency," BIS Quarterly Review, Bank for International Settlements, March.
    5. Ying Lei Toh & Thao Tran, 2020. "How the COVID-19 Pandemic May Reshape the Digital Payments Landscape," Payments System Research Briefing, Federal Reserve Bank of Kansas City, pages 1-10, June.
    6. Jesse Leigh Maniff & W. Blake Marsh, 2017. "Banking on Distributed Ledger Technology: Can It Help Banks Address Financial Inclusion?," Economic Review, Federal Reserve Bank of Kansas City, issue Q III, pages 53-77.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Joann Jasiak & Peter MacKenzie & Purevdorj Tuvaandorj, 2023. "Digital Divide: Evidence from the 2020 Canadian Internet Use Survey," Papers 2301.07855, arXiv.org, revised Apr 2026.
    2. Arno J. van Niekerk, 2024. "Economic Inclusion: Green Finance and the SDGs," Sustainability, MDPI, vol. 16(3), pages 1-21, January.
    3. Jesse Leigh Maniff, 2020. "Inclusion by Design: Crafting a Central Bank Digital Currency to Reach All Americans," Payments System Research Briefing, Federal Reserve Bank of Kansas City, pages 1-5, December.
    4. Noll, Franklin & Lipkin, Andrei, 2021. "Smart Banknotes and Cryptobanknotes: Hybrid Banknotes for Central Bank Digital Currencies and Cryptocurrency Payments," MPRA Paper 110887, University Library of Munich, Germany.
    5. Kwami Ahiabenu, 2022. "A Comparative Study of the Design Frameworks of the Ghanaian and Nigerian Central Banks’ Digital Currencies (CBDC)," FinTech, MDPI, vol. 1(3), pages 1-15, August.
    6. Jeremie Banet & Lucie Lebeau, 2022. "Central Bank Digital Currency: Financial Inclusion vs. Disintermediation," Working Papers 2218, Federal Reserve Bank of Dallas.
    7. Marc Sanchez-Roger & Esther Puyol-Antón, 2021. "Digital Bank Runs: A Deep Neural Network Approach," Sustainability, MDPI, vol. 13(3), pages 1-18, February.
    8. Peterson K. Ozili, 2025. "How Politics Hinder Central Bank Digital Currency (CBDC) Development and What to Do about It," Journal of Central Banking Theory and Practice, Central bank of Montenegro, vol. 14(1), pages 59-74.
    9. Ozili, Peterson K, 2022. "Can central bank digital currency increase financial inclusion? Arguments for and against," MPRA Paper 110786, University Library of Munich, Germany.

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    JEL classification:

    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

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